Coleman Data Solutions’ remittance processing services provide an outsourced solution for retail lockbox situations such as those involving utilities, taxes, medical and other industries. We have processed millions of payments for all of these industries and more.
Benefits of Outsourced Remittance Processing
The problems and costs involving remittance processing come with an increased volume of payments and remittances (payment documents and stubs) that need processed. There comes a time where a large number of resources are wrapped up in handling this process. This could be in the five thousand monthly transaction range or higher. Both because of this significant volume, and because of the fact that remittance transactions are oftentimes recurring; this is why government entities such as tax departments, utilities, and other industries choose to utilize lockbox services as a remittance processing solution. A good portion of remittances and payments are still sent in by mail.
Remittance processing solutions provide benefits such as:
• Halt the rise of necessary FTEs to process remittances
• Free up staff to focus on your core business
• Shorten cash application cycle time
• Get out of the mailroom business and let someone else handle all of the remittance related processes, from collection, scanning, keying, to reporting
• Increased accuracy of payment posting
• Digitized records, so if there are any questions, the information is available at the click of a button – not sorting through batches of paper records/checks
• Reduction in paper usage, equipment, and storage
Organization: Energy Company
Customers: 200,000, of which about a third (65,000) send payment and remittance coupons in by mail on a monthly, recurring basis
Process: complete in-house remittance processing. Staff receives and opens mail, posts payments to appropriate accounts, and then takes the checks to the bank.
Issues: expanding volume, increased capital expenses for equipment & supplies, increased labor costs from time spent in processing and related activities, i.e. responding to related questions or problems
Solution: set up of a retail lockbox (designated customer payment PO Box), managed by a lockbox processor – a complete remittance processing solution.
Most of the costs involved for outsourced remittance processing are incurred as a per item fee. These fees are based on matched pair amounts – one payment amount that matches with one remittance stub amount per item. You can expect to pay a higher rate per item for any scenario where the documentation is unbalanced. Examples would be:
• unmatched correspondence (the payment and remittance coupon do not match)
• >1 payment with only one remittance stub
• Payment only – no remittance
• No payment
Coleman Data Solutions’ specializes in all of the steps of remittance processing. We have a dedicated mailroom to collect and process remittance mail. Our imaging and data entry services handle all of the scanning and keying of the payment and stub information.
Secure Document Storage & Handling
We store documents in a secure storage area inside our facility. This area has controlled access through a card reader system with 24 hour video monitoring. We follow U.S. Dept. of Homeland Security guidelines for document storage and access.
The boxes are standard unlocked banker boxes with the capacity for 2,000 documents per box. We shred documents according to an agreed upon retention schedule. All employees that come into contact with payments (cash, checks, money orders) are bonded.
Collection and processing – deposits, AR updating, and reporting, are completed daily. We are highly optimized for remittance processing, as our core business is data and document management solutions. Call or contact us today.